Binance will apply a new “risk warning” banner and pop-up notification to several tokens on its platform, the exchange announced on Oct. 1.
Notably, Binance has listed 10 tokens that will have the “risk warning” tag going forward, with IOTA (IOTA), Chiliz (CHZ) and Enjin Coin (ENJ).
The other projects whose tokens will feature this tag on Binance include Travala, Orion, Lisk, Metal DAO, Self Chain, Solar, and Vanar Chain.
Why the ‘risk warning’ banner?
While the world’s largest crypto exchange by trading volume already applies a monitoring tag to tokens with heightened volatility, it said in an announcement that it is taking this step in response to community feedback.
Specifically, the warning, which will take the form of a banner and pop-up notification on each of the coins, is meant to highlight to users that the given token recently underwent significant changes with regard to tokenomics.
“To gain trading access to tokens marked with significant tokenomics changes, users will first need to acknowledge the pop-up notification,” Binance wrote.
The above 10 tokens have all seen notable changes to their respective tokenomics and token supply over the past 18 months. For instance, Binance recently announced support for Orion’s upgrade and token rebrand to LUMIA.
The upgrade set for October will see the project’s total supply increase from 92,631,255 ORN to 238,888,888 LUMIA.
Chiliz also updated its tokenomics earlier this year, adjusting the CHZ token’s annual inflation rate.
Binance will apply a similar warning to any projects that significantly alter their tokenomics to increase supply going forward.
Binance’s increased compliance measures
Over the past several months, Binance has sought to increase its risk management and compliance measures.
This latest step aligns with what the exchange announced earlier in the year regarding its monitoring tag, which it applied to several coins including Monero (XMR) and Zcash (ZEC).
These measures are part of the exchange’s shift in approach after regulatory crackdown saw it reach a staggering $4.3 billion settlement with U.S. authorities in 2023. Binance also faces a lawsuit from the U.S. Securities and Exchange Commission.
Meanwhile, founder and former CEO Changpeng Zhao was recently released from jail following his four-month imprisonment.
